Does the Value-added Tax Reform Restrain Corporate Financialization? Based on the Perspective of Credit Refund Policy
Shao Xuefeng,
Wang Longqi
Abstract:This paper studies the impact of tax reform on corporate financialization based on the sample data of China's A-share manufacturing industry. Using the VAT credit refund policy in China as an exogenous shock to conduct a difference-in-differences estimation, we find that the credit refund policy can significantly inhibit corporate financialization. The intermediary mechanism shows that the credit refund policy has a restraining effect on corporate financialization by alleviating cash flow constraints and encou… Show more
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